Another modular homes company has risen from the ashes through a pre-pack sale by its former directors, marking the second offsite construction business to do so in recent weeks.
Boutique Modern, the £6 million turnover modular housing specialist based in East Sussex, has had its assets acquired by BM Modular, a newly formed company, in a £24,000 upfront deal.
Backed by ex-directors and co-founders, Neil Eckart and Lucas Shone, the firm has committed to paying between 0.5 per cent and one per cent of the profits achieved on any transferred contracts upon their completion.
The deal marks the second offsite construction firm to be resurrected in recent weeks, following the launch of Merit Industrialised Construction by former Merit Group Services directors in a £396,000 deal, which saw key assets from the administration process acquired.
Founded in 2010, Boutique Modern, which entered administration last October, gained recognition for its energy-efficient homes, later expanding its offering to include main contracting and lead design services.
The company secured key Local Authority contracts through the LDC Modular Building Framework 2020 and worked on several housing association projects.
However, logistical constraints and planning issues on some of these projects consistently hindered the firm leading to delays, cost overruns, contract disputes, and impacted margins.
Despite securing £41 million in new contracts due to begin in 2026, ongoing disputes, liquidated damages, delayed project starts, and factory downtime following a relocation to a larger facility exacerbated its cash flow problems.
By October 2025, with liabilities of £1.9 million, the company was forced into insolvency, with joint administrators at FRP Advisory appointed due to “unsustainable” financial pressures.
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In the administrator’s proposal, published this week, £113,373 related to employee pay is expected to be paid, while £141,460 owed to HMRC, a secondary preferential creditor, will not be met.
While the sale ensures the continuation of ongoing affordable housing projects, it still leaves a more than £4.2 million shortfall for trade creditors, with insufficient funds expected to make any meaningful return.
Phil Harris, joint administrator, said: “Boutique Modern has built a strong reputation for delivering sustainable, affordable housing solutions through innovative modular construction.
“While challenges arising from a historic contract created financial difficulties, this transaction secures continuity for the business, protects jobs and supports the delivery of much-needed homes across the region. We wish the team every success as they move forward under a new entity.”
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